Poised for Growth, F3 Technologies Discusses Revenue Opportunities in Growing Software-as-a-Service Industry

F3 Technologies, Inc. (PINKSHEETS: FTCH), an Atlanta-based SaaS development company and application service provider, is reacting favorably to this year's survey of more than 850 enterprise software customers by McKinsey and Sandhill. The report confirms the company's projections that SaaS adoption is on the rise. The report indicates "good news for the industry, despite the current softness in the U.S. economy. Because the majority of the activity in the software sector occurs in North America, having customers on the lookout for innovative offerings provides some assurance that, despite industry consolidation, there's growth potential ahead."

With the breadth of SaaS product offerings in industries such as association management, church, business productivity and entertainment, F3 is poised to take advantage of this growing adoption on multiple fronts. F3 has always intended to serve the small to mid-size business market due to "the momentum behind adoption of subscription and on-demand purchasing models clearly being driven by small to midsized business customers." According to McKinsey and Sandhill, "another bright spot for the industry is the accelerated adoption of subscription and on-demand purchasing models by enterprises over the past year. Last year's survey showed that companies expected to spend 21 percent of their software budgets by 2009 on these pricing models," which translates to $71 Billion. According to recent Forrester surveys, global software spending rose from $313B in 2007 to $341B for 2008. The McKinsey and Sandhill Survey states "this is especially good news for SaaS vendors who by the nature of their products sell either by subscription or on demand." All of the products currently developed and in planning phases for F3 are based on selling under the subscription-pricing model. Using a similar strategy, F3's chief competitor in the Software-as-a-Service CRM market Salesforce.com has posted $920 million in revenue already this year.

"2009 will be a great year for F3. With the majority of our product development completed, the company will focus the majority of its time and efforts on targeted sales initiatives for our 3 core products," says Frank Connor, CEO of F3 Technologies. With its comprehensive approach to business software F3 plans to aggressively compete in the areas of CRM, Project Management, Human Resources, Accounting, Website Content Management System, and E-Commerce with its Ascend Global Business System in 2009. F3's Interaction Community System will broaden its vertical market targets by going after homeowner associations, property management firms, churches, commercial office buildings, and other membership-oriented organizations like schools and PTAs. FargoTube, F3's entertainment offering, will continue to offer innovative ways for its users to earn money from their video content.

F3 has already begun marketing objectives to place them in the enterprise software game. Since "there are some large enterprises converting to the models that underpin SaaS offerings, there is a clear opportunity for those that can offer the right product in combination with the right selling strategy" according to the McKinsey and Sandhill report. F3 intends to be ready for this shift by developing software aimed at not only the SMB market, but adaptable to enterprise markets as well.

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